REAL ESTATE BOOM ACROSS WORLD
The land hunting bonanza is trending across the globe ever but the resilience of the real estate market in 2020 is the biggest surprise of the year. The Global pandemic in 2020 has affected every industry across the World, but perhaps none as shockingly real estate industry.
In 2020, where people are pushed to stay at home and have to face a financial downfall, there is a record decline in the real estate sector across the world. As the world has entered a new year, 2021, still it seems there is no way back to ‘Normal’. However, in 2021 positive signs are amazingly visible and the real estate industry is expected to revive soon.
EFFECT OF COVID-19 CRISES ON REAL ESTATE DURING 2020-2021
In 2020, the Covid-19 pandemic crises have led to a decline in the future sentiments index of the real estate industry across the world, but according to some reports, it’ll remain optimized.
According to the January to March 2021 survey of 28th Edition of Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q1 2021, the ‘future sentiment score’ of real estate across the world has declined from ‘65 in Q4’ 2020 to ‘57 in Q1’ 2020, just because of uncertainties and after-effects of coronavirus.
However, this sentimental score related to the real estate sector remained in the optimistic zone in 2021. According to the current reports, the ‘Sentimental Score’ has improved marginally from ‘54 in Q4’ 2020 to ’57 in Q1’ 2021. These statistics are giving clear vibes that in near future there will be healthy momentum in the real estate industry.
In March 2021, with the increase in COVID-19 cases across the globe, the outlook for a real estate sale and purchase has softened, and more chances are that the real estate market will remain steady.
Looking ahead to the revival of the real estate sector, the real estate giants and investors of the world are trying to figure out how quickly the revival will occur, what are the potential opportunities, and where to invest capital. People who look for short-term benefits are relying on the tenant liquidity capacity while the real estate occupiers are keeping an eye on liquidity needs.
PROPERTY RATES ARE EXPECTED TO REMAIN CONSTANT IN 2021
According to property insights, there are chances that property prices will remain constant throughout the world. Some influential aspects like unsold inventory, economic downfall, distress caused by Corona Virus, and low-interest rates have contributed to the decline in the prices of property.
As per experts, this is the best time to invest in the real estate sector because the investors will have more room to generate huge ROI by making small investments. It is a common saying by T. Harv Eker that:
‘Don’t wait to buy real estate, buy real estate and wait’
This saying is truly applicable in 2021, as the real estate industry is reviving, the chances are more to get guaranteed and maximum profits, so this year is the best to make investments and to wait to get benefits from it.
SMART PEOPLE IN THE REAL ESTATE INDUSTRY ARE COMING OUT STRONGER
Despite all the outrages in the past year, some industry players have played smartly. They stayed firm during the socio-economic downfall and adopted new technologies and digital trends to provide services remotely.
For EXAMPLE:
Some real estate agencies in the world are providing a virtual tour of the properties to the client by utilizing possible means of technology and platforms like Youtube, Facebook, Instagram, etc. They are offering user-friendly and customized services, and people are liking these flexible means of dealing.
This new means of customer dealing in the real estate industry has provided a base to continue business effectively. Every real estate dealer, real estate agency, and real estate investor is now attracted towards digitalization, so the chances are there once after full recovery, the real estate industry will stand out even brighter.
REDUCING TAXES TO BOOST THE REAL ESTATE SECTOR
In the world, all the major country’s governments have the intention to boost the real estate industry, that is why they have reduced taxes and duties to provide relief to this sector. Across the world, especially in countries like UK, USA, Pakistan, and India, the government has taken many initiatives to boost up the real estate sector.
The real estate industry of different countries is boosting as per their government initiatives, capital, assets, liquidity, and economic circumstances.
TOP EMERGING COUNTRIES IN THE REAL ESTATE SECTOR
In 2018, as per the reports of the International Investor Survey, some of the countries are safe and secure for making real estate investments. In 2021, these countries still have a stable real estate economy. These countries are:
| RAKING OF COUNTRIES HAVING STABLE REAL ESTATE MARKET | COUNTRIES |
| · NUMBER 1 | US |
| · NUMBER 2 | Germany |
| · NUMBER 3 | Canada |
| · NUMBER 4 | UK |
| · NUMBER 5 | Australia |
According to the reports of AFIRE, some of the countries will have the best real estate investment market in 2021. Here is the ranking of top emerging real estate industries:
| RAKING OF EMERGING REAL ESTATE MARKETS | COUNTRIES |
| · NUMBER 1 | Brazil |
| · NUMBER 2 | China |
| · NUMBER 3 | India |
| · NUMBER 4 | Mexico |
| · NUMBER 5 | Colombia |
Apart from these major countries, many other underdeveloped economies are also standing high in the real estate industry day by day. These countries include Pakistan, Japan, Malaysia, Thailand, Srilanka, Mongolia, Vietnam, etc.
CONCLUSION
It’ll be quite surprising to see how the real estate industry will shape in 2021. As there is some plight of Coronavirus still going on across the world, there can be the chance of some dramatic changes in some countries.
Let’s see what happens…!
We hope that the real estate industry will revive soon with full zeal and zest.